Page 259 - Introduction to Business

CHAPTER 7 Motivating and Leading Employees 233

Japanese car transplants in the U.S., especially Honda and Toyota, have achieved much success using Theory Z approach. Corporate America is generally unwilling to guarantee lifetime employment, just as American labor unions are unwilling to accept gradual wage increases. Employees are rewarded when they do the desired work and penalized when they don’t. (continued)

Reinforcement Theory

Civil servants will tend to fall under Type X. However, even they can be motivated to perform better using positive re- inforcements. It is difficult and unjust to broadly categorize people under Type X and Y.

Particularly applicable to white-collar jobs since the theory was based on a study of accountants. Distinction between motivation and hygiene factors are not universal or clear cut. One person’s motivation factor may be another’s hygiene factor. Equity Theory Employees are motivated to work smart and contribute to corporate success if they believe that they are treated and compensated fairly.

Commonly adopted in universities and white-collar corporate jobs. Not applicable worldwide, especially in developing countries where the hierarchy of needs could be different. Contemporary Motivation Theories

companies, large and small, allow employees to manage their environment within reason, e.g., schools, universities, etc. In common work areas, the likes and dislikes of all parties need to be considered. Conflicts and concerns must be addressed.

Many own work security motivated to work hard to achieve an identifiable award provided the prospects of receiving that reward are

Expectancy Theory Employees will be reasonable.

(Cont.) Evolution of Motivation Theories Automobile assembly, meat packing, apparel and athletic shoe manufacturing, etc. Does not hold universally, especially in developed countries.

EXHIBIT 7.2 Application (examples) Theory’s Weakness Key aspect of motivation theory (What motivates employees?)

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